Saving Pots that unlock when you reach your target

UK Feedback & Ideas
1

I’d love to see a new type of Savings Pot where you can set a target amount, and the Pot stays locked until you actually reach that target.

For example:

:bullseye: Target: £10,000
:money_bag: Current balance: £4,250
:locked: Withdrawals: Disabled

You’d still be able to add money to the Pot as normal, but you wouldn’t be able to withdraw or transfer money out until the balance reaches £10,000.

Once you hit the target, the Pot would automatically unlock. :tada:

I think this could be really useful for people saving towards things like:

:house: A house deposit
:automobile: A car
:ring: A wedding
:airplane: A holiday
:sos_button: An emergency fund
:graduation_cap: Education

Monzo already has savings goals and locked Pots, but this would work differently because the unlock condition would be the amount saved rather than a specific date.

It could be as simple as:

Target: £10,000
Unlock when: £10,000 is reached
Withdrawals before target: :cross_mark: Not allowed

You could even have an option where the target can be increased later, but once the Pot is locked, the customer can’t lower the target or withdraw money until they reach it.

For people who find it tempting to dip into their savings, this would make the goal feel much more meaningful because you genuinely know that money is staying there until you’ve achieved what you were saving for.

I’d personally use this for a house deposit, and I think it could be a really nice addition to Pots.

What do you think? Would anyone else use this? :eyes:

1 Like
2

No, just create a Savings pot with your desired amount as the pot name “Holiday - £600” then stop paying into it once you reach it.

1 Like
3

It would be good for people who struggle with temptation to spend their savings on other things, such as something they’ve seen which they like and want to get.

If you lock it and it unlocks once you reach a certain target (using your example, £600), it would stop this from happening!

4

No, it wouldn’t.

Monzo have tried the locked pots and the inbound it caused was not worth the money to unlock them.

If people want that money, they will make any and all excuses to get that money out.

Save to another bank, out of sight out of mind. Delete that other banks app and cut up the card.

That’s the best bet.

3 Likes
5

Great idea particularly for:

This already exists for many accounts. Monzo also have a Fixed Rate Saving, but you only have 2 weeks to put into it before it locks. Essentially your request is saying you can put in but not take out.

Is it going to stop you withdrawing if you really need it? No, similar to a traditional piggy bank where you’d have to smash the thing to get the money! It does help you resist the temptation to dip into! I’ve done this already this year and have opened ‘fixed rate’ savers - some 1, 2 and longer years. Got over £2000 in them so far!

I’d definitely use the Monzo one if implemented in the way you suggest! Saves having to open several accounts!

6

Fixed rate savings are different, Monzo can lend out the money knowing it can’t be easily withdrawn before then (without a penalty).

Adding this wouldn’t benefit Monzo as it’s essentially an easy access saver but with the potential to add more work on support when they have to deal with people contacting them because they need to withdraw the money for whatever reason they come up with.

7

Works for me and the same use-case provided by the OP. Just a workaround :slightly_smiling_face:.

8

Locked pots are a nightmare to deal with. They won’t come back.

The new savings pots will hit your interest if you withdraw, that’s the best friction you’ll get.